Charge phase 2 investors a funding fee, which gets distributed to phase 1 investors pro-rata to compensate them for their risk.  

Toronto price to rent ratio will never catch up..

Not everyone wants that or is willing to put up with that.

You have the same problem most people have. 

Any advice on what setup is easiest and most tax advantaged?

If the guest feels slighted, there is no fact checking service provided by AirBnB to confirm their claims, so it is up to you to let future guests know the level of professionalism you provide.If you are able, I would recommend editing your response to the 1-star review.

Buying a large new build home can also work well as a house hack as you can charge a premium rent, and generally most bedrooms built now a days have en suites (at least in my market).  

Maximum LTVs seem to be around 80%, with DSCR ratios typically needing to be around 1.20.

If a seller wants to sell for future value they need to do what is necessary to bring the value up to that price. 

Hey Brandon, welcome to BP!